The Analysis of Cellular Services and Estimating Fixed to Mobile Price Elasticities-A Case Study of United Kingdom

This paper seeks to undergo the systematic economic analysis of the rapid growth in the U.K. telecom sector and demand for mobile services and the current developments in telecom sector have been thoroughly discussed. The quarterly data from Ofcom telecom, UK telecom regulatory authority of four cellular operators, and fixed line services from 1999Q2 to 2006Q4 have been analyzed in this paper. The UK Mobile demand model has been made and it has been that the price elasticity (-0.52) is negatively related to the volume of mobile. It was also found that the GDP (Gross domestic product) and Subscribers both are positively related to the minutes of mobile telephone.